Suppose there are two firms operating in a market. The firms
produce identical products, and the total cost for each firm is
given by C = 10qi, i = 1,2, where qi is the
quantity of output produced by firm i. Therefore the marginal cost
for each firm is constant at MC = 10. Also, the market demand is
given by P = 106 –2Q, where Q= q1 + q2 is the
total industry output.
The following formulas will be...